Abengoa Yield set to launch IPO

Spanish solar-thermal developer Abengoa says its wholly-owned US subsidiary Abengoa Yield Plc is ready to launch an initial public offering of ordinary shares that it expects will raise $600m.

The underwriters of the offering will have a 30-day option to purchase up to an additional 15 % of that amount from Abengoa, to cover overallotments, if any.

A preliminary prospectus is available through Citigroup and BofA Merrill Lynch, global coordinators of the offering. Canaccord Genuity, HSBC, RBC Capital Markets and Banco Santander are acting as joint bookrunners.

Abengoa in April said it will use its yieldco vehicle to own, manage and purchase solar, biomass and other renewable energy assets in the US and Latin America.  It has applied to list Abengoa Yield shares on the NASDAQ stock market under the symbol ABY.

Today’s announcement did not say how many shares will be sold or provide an anticipated price. Abengoa generates roughly one-third of its global sales from the US.